Johannesburg – 27 May 2025

Technology group Altron has posted an impressive 59% increase in headline earnings for the year ended February 2025, as the company doubles down on its strategic pivot towards recurring revenue models and digital-first services.

The Johannesburg-listed firm reported headline earnings of R390 million, up from R245 million in the prior year. This strong growth reflects continued operational improvements, tighter cost control, and a refined business focus following the group’s exit from non-core operations in recent years.

CEO Werner Kapp said the performance validates the group’s renewed emphasis on predictable income streams, such as managed services and subscription-based platforms. “Recurring revenue is becoming the backbone of our financial model. It offers stability in a volatile economic climate and supports our drive to build a scalable, future-ready digital business,” Kapp said during the results presentation.

Annuity revenue now makes up more than 60% of Altron’s total income, thanks to growing demand for services like cloud migration, IT outsourcing, enterprise software support, and secure payment solutions.

Revenue from continuing operations edged up to R8.7 billion, with strong performances from Altron Systems Integration, Altron FinTech, and Altron Managed Solutions. Public sector digital projects and retail sector demand also played a significant role in driving top-line growth.

Operating profit climbed 31% to R685 million, supported by improved efficiencies and streamlined operations. Kapp highlighted the group’s efforts to sharpen its core focus, noting that disciplined execution and smart capital deployment have yielded strong shareholder value.

The board declared a final dividend of 26 cents per share, bringing the total annual payout to 48 cents, up from 32 cents in the prior year.

Looking forward, Altron plans to ramp up investment in high-growth areas such as cybersecurity, data intelligence, and cloud-based enterprise solutions. The company also plans to expand its footprint in sectors like financial services, public administration, and healthcare.

Despite the challenging domestic landscape — marked by power disruptions and sluggish GDP growth — Altron remains cautiously upbeat, underpinned by a strong pipeline of digital transformation contracts and a rising base of contracted recurring income.